LOCAL real estate agents have warned homeowners in five Boroondara suburbs could face a lower house prices as a result of a council driven heritage study.
A municipal wide heritage gap study is in the process of selecting properties and precincts the City of Boroondara will recommend have heritage protections applied.
The five-year study began in mid 2016. So far, across Canterbury, Camberwell, Hawthorn and Kew heritage overlays have been recommended for 80 properties (commercial and residential), 32 precincts, and extensions to 13 existing heritage precincts.
Kew East, Mont Albert, Hawthorn East, Glen Iris and Ashburton are yet to have recommendations made.
Boroondara mayor Jim Parke said the study had received around 100 submissions for each suburb being reviewed and was being undertaken in a response to local demand for better protection to heritage buildings.
“A high degree of importance was attached to the heritage of our city and, in particular, the protection of heritage buildings,” Cr Parke said.
He added that while some owners saw a heritage overlay as a way of providing certainty and protection from neighbouring developments, it had raised concerns from some homeowners worried how a change might affect the value of their property.
“For some, the prospect of a heritage overlay raises concerns about the flexibility they have to alter their property or about the effect on the value of their property,” Cr Parke said.
“Council is not aware of any recent, objective research to support the proposition that there is any reduction in property value as a result of a heritage overlay, but this is not a matter we can legally take into account when considering a heritage overlay in any event.”
Nelson Alexander Kew’s Cameron Ingram sold a property at 16 and 16A View St, Hawthorn, on October 14 for $2.7 million.
The property owner received a notification that it had not been recommended for a heritage overlay just days ahead of the auction.
Had the property been recommended for heritage protection, Mr Ingram said it would have been a different result with the buyer at the time only interested in a site where they could build a new home.
“That could have had a catastrophic effect if it had gone the other way,” Mr Ingram said.
“There’s definitely more buyers out there looking to buy properties and built new homes. So that additional buyer in the mix, sometimes they are the only one, that can have an impact.”
He added that this demand had continued right to the end of 2016.
A block of units at 12 Mason St, Hawthorn, had attracted buyers at its December 9 auction, but they had been well aware of the implications of it being in a heritage precinct, Mr Ingram said.
JA Cain real estate agent Chris Cain said more and more home buyers in the region were looking for a house they could knock down and replace, and this could have an impact on homesellers.
“I think it definitely could have an effect on prices,” Mr Cain said.
He said homes with a heritage overlay would still sell, but there would likely be less competition for them with a portion of the market unlikely to bid for them.
He added that selling prior to a decision being made for heritage overlays in the remaining suburbs might be an option for those looking to sell in the near future.
Source : https://www.realestate.com.au